Controlling (CO) Purpose Controlling provides you with information for management decision-making.

It facilitatescoordination, monitoring and optimization of all processes in an organization. This involvesrecording both the consumption of production factors and the services provided by anorganization.As well as documenting actual events, the main task of controlling is planning. You can determinevariances [Extern]by comparing actual data with plan data. These variance calculations enableyou to control business flows.Income statements such as, contribution margin accounting, are used to control the costefficiency of individual areas of an organization, as well as the entire organization Controlling consists of all master data, configuration, and reporting required to analyze both spend and revenues, both within and across organizations. This includes the following master data:

Cost Elements - cost and/or revenue accounts Cost Centers - departmental units Profit Centers - business lines, product lines or divisions Internal Orders - projects or events Functional Area - Cost of Sales Accounting Statistical Key Figures - non financial statistics for allocating or measuring financial costs Activity Types - Labor or other activity costs

Business process associated with the SAP CO module:

Subcomponents of the SAP Controlling (SAP CO) Module: CO-OM - Overhead Management - CO-OM-CCA - Cost Center Accounting - CO-OM-OPA - Internal Order Accounting - CO-OM-CEL - Cost Element Accounting - CO-OM-ABC - Activity Based Costing CO-PCA - Profit Center Accounting CO-PA - Profitability Analysis CO-PC - Product Costing

Controlling Area: TCODE: OKKP Organizational unit within a company, used to represent a closed system for cost accounting purposes. A controlling area may include single or multiple company codes that may use different currencies. These company codes must use the same operative chart of accounts. All internal allocations refer exclusively to objects in the same controlling area.

Cost Element Accounting:

Purpose Cost Element Accounting [Ext.] is that part of cost accounting involved in the recording and classification of the costs incurred during a given settlement period. It is thus not an accounting system as such, but rather a detailed recording of data that forms the basis for cost accounting Types of Cost Element: 1. Primary Cost element 2. Secondary Cost element. Creation of Primary Cost Element: Primary cost elements are created by three types: 1. Creation of Cost element at FI Level 2. Creation of Cost element at Controlling area Level 3. Automatic creation of cost element. 1. Creation of cost element at FI Level Go To TCode: FS00 Create a G/L account : as Salaries Save Click on EDIT COST ELEMENT Button Give cost element : as G/L no of Salaries Give valid from _____ to______ date Enter Give Cost element Category: as 1 Save 2. Creation of Cost element at controlling area Level: Goto TCode: KA01 Give Cost element: Give valid from _______to______ date Enter Give Cost element Category: as 1 Save Note: Before Creating the cost element through Transaction code: KA01 we have to create G/L account through Transaction Code: FS00.

Primary costs are only crated when the respective general ledger exists in the operational chart of accounts. The SAP system takes the cost element name from the G/L account master data in Financial accounting. But we can change the name in management accounting. 3. Automatic creation of primary cost element: There are three steps for Creation of Primary cost element in this area Steps: 1. Make default settings: OKB2 2. Create Batch Input session: OKB3 3. Execute Batch input Session: SM35 1. Make default settings: OKB2 TCODE: OKB2 Goto Tcode: OKB2 Give chart of Accounts: Enter Give Account from Account to 1 Save Create Batch Input session: OKB3 Execute Batch input Session: SM35 100

Cost element Category 1

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